If the receivables turnover ratio decreased during the year, a. The days to collect also decreased. b.
Question:
If the receivables turnover ratio decreased during the year,
a. The days to collect also decreased.
b. Receivables collections slowed down.
c. Sales Revenues increased at a faster rate than Accounts Receivable increased.
d. None of the above.
Step by Step Answer:
Req1 Req2 a b c d Accounts Receivable Service Revenue A...View the full answer
Fundamentals Of Financial Accounting
ISBN: 9781265440169
7th Edition
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby
Related Video
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period and multiply the result by the number of days in the period being measured.
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